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Press release from CNW Group

BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR ITS YEAR ENDED DECEMBER 31, 2010

Thursday, March 03, 2011

BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR ITS YEAR ENDED DECEMBER 31, 201020:13 EST Thursday, March 03, 2011MONTREAL, March 3 /CNW Telbec/ - For the fiscal year ended December 31st, 2010, the Company's revenue increased by $4,435,000 to $822,507,000, from the $818,072,000 recorded in the corresponding 2009 period. Net income for the fiscal year ended December 31st, 2010, stood at $75,122,000 compared with $67,029,000, for the previous fiscal year. Basic earnings per share increased going from $1.27 in 2009 to $1.46 in 2010.Results from the costing of options had the effect of reducing net basic earnings by $0.17 per share, compared to a decrease of $0.22 per basic share for the previous year. While the Company costs options as either an expense or revenue in the net earnings calculation, the Company believes it is preferable to inform readers of its financial statements of the impact of this element, which is outside the Company's control and which varies along with the course of the Company's share price in any given time period. An increase in the Company's share price incurs an expense, while a decrease in the Company's share price incurs revenue. Of particular concern is that the reader could be made to believe that the Company's profitability had risen in the context of a major decrease in the Company's share price. It is for this reason that the Company includes net earnings in absolute dollars and per-share dollars excluding this costing of options effect, even though doing so does not conform to GAAPs, it is therefore unlikely that we can compare them with the same type of measures presented by other issuers. It is worth noting that the Company offers a stock option program that allows the holder to exercise his options in lieu of cash therefore being one of few public companies to expense options on an ongoing basis.The Company records its investments at market value. However, due to the liquidity issue with respect to MAV, the Company recorded in 2009 a charge of $1,525,000 before tax or $1,315,000 after tax or $0.05 per basic share was recorded as an additional provision for the estimated lost in value, which brought the provision to 100% of its nominal value.The share repurchase program contributed $0.02 to net per basic share earnings.Excluding these effects, net earnings would have increased by $3,730,000 or $0.07 per basic share.The adjusted $3,730,000 increase in net earnings breaks down as follows:    2010                   2009          ($ in thousands)Net Earnings              75,122               67,029Cost of options (after-tax)                8,698               11,746Provision for MAV (after-tax)                  1,315Adjusted Net Earnings              83,820               80,090MINUS : Adjusted Net Earnings for the 2009 period                 80,090               Increase 2010                3,730  This increase in adjusted and after tax operating earnings was spread out through the quarters as follows: ($ in thousands)Increase (decrease) Increase (decrease) retail operatingIncrease (decrease)adjustedearningsinvestment incomeoperating earnings    1st quarter 20103,3386894,0272nd quarter 20103,438(4,382)(944)3rd quarter 20101,762(992)7704th quarter 2010(1,165)1 042(123)Total:7,373(3,643)(1)3,730(1) The decrease in investment income does not account for the provisions of the MAV.Annual Financial Information           201020092008 ($ in thousands, except for per share amounts)Revenue822,507   818,072      856,229Net earnings75,122       67,029       69,908Total Assets347,502     313,925     244,532Net Earnings per share    BasicDiluted1.46      1.40      1.27      1.23      1.18      1.14Dividends per share0.24      0.19      0.18* After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.Quarterly Results (unaudited)($ in thousands, except for per share amounts)        March 31     June 30     September 30     December 3120102009201020092010200920102009        Revenue183,148168,805207,801204,956215,712220,363  215,846223,948Net earnings      3,615      3,084   17,914   19,685    20,945    25,51732,648    18,743Net Earnings per share*         Basic        0.07        0.06        0.34        0.36      0.41      0.490.64       0.36 Diluted        0.06        0.05     0.34     0.35      0.40      0.480.60       0.35* After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.For the three month period ended December 31st, 2010, the Company's revenue decreased by $8,102,000 to $215,846,000 from the $223,948,000 recorded in the corresponding 2009 period. Net income for the three month period ended December 31st, 2010, stood at $32,648,000 compared with $18,743,000, for the corresponding 2009 period. Basic earnings per share stood at $0.64 in 2010 compared with $0.36 in 2009. The result from costing of options had the effect of increasing the basic earnings per share by $0.09 compared to a decrease of $0.15 for the corresponding 2009 period. The share repurchase program reduced by $0.01 to net basic per share earnings for the quarter ended December 31st, 2010.The Company records its investments at market value. However, due to the liquidity issue with respect to MAV, the Company recorded in 2009 a charge of $1,525,000 before tax or $1,315,000 after tax or $0.05 per basic share was recorded as an additional provision for the estimated lost in value, which brought the provision to 100% of its nominal value.Excluding these effects, net earnings would have decreased by $123,000 or $0.00 per basic share for the three-month period ended December 31st, 2010.The adjusted $123,000 decrease in net earnings breaks down as follows for the three-month period ended December 31st, 2010:  2010               2009 ($ in thousands)Net Earnings                 32,648             18,743Cost of options (after-tax)(4,732)               7,981Provision for MAV (after-tax)                 -               1,315Adjusted Net Earnings                 27,916             28,039MINUS : Adjusted Net Earnings for the 2009 period                    28,039 Decrease 2010                     (123) During the fiscal year, the Company paid eligible dividends of $0.24 per share to holders of Class A Subordinate Voting Shares and Class B Multiple Voting Shares.The number of outstanding shares of the Company changed during the twelve month period ended December 31st, 2010 due to the share redemption programs implemented in February 2010, the 2 for 1 stock split on April 6th, 2010 and the conversion of Class B Multiple Voting Shares. Accordingly, 1,457,300 Class A Subordinate Voting Shares were redeemed by the Company and cancelled, while the Company issued 10,037,987 class B multiple voting shares and 15,962,013 Class A subordinate voting shares following the 2 for 1 stock split, and finally 17,832,892 Class B Multiple Voting Shares were converted into 17,832,892 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of December 31st, 2010, 2,465,786 Class B Multiple Voting Shares and 48,219,714 Class A Subordinate Voting Shares outstanding.Renewal of Normal Course Issuer BidThe Company announces that it has received the required regulatory approvals to renew its normal course issuer bid to acquire Class A Subordinate Voting Shares listed on the Toronto Stock Exchange (the "TSX") for the period between March 8th, 2011 and March 7th, 2012, at the latest. The Company's previous normal course issuer bid ended on November 16th, 2010. Pursuant to its renewed normal course issuer bid, the Company intends to acquire, through the facilities of the TSX and through alternative trading systems (such as Alpha ATS) and in accordance with their requirements, up to 2,410,992 of Class A Subordinate Voting Shares, representing about 5% of the 48,219,857 Class A Subordinate Voting Shares issued and outstanding as at February 28th, 2011.Within the last 12 months, the Company acquired for cancellation, under its previous normal course issuer bid, a total of 1,457,300 Class A Subordinate Voting Shares with respect to which the weighted average price paid was $21.94 per share.BMTC will comply with the rules governing purchase conditions applicable on the market where purchases of Subordinate Voting Shares are made. The price that BMTC will pay for any Class A Subordinate Voting Shares purchased under its normal course issuer bid will be the market price for the Class A Subordinate Voting Shares at the time of the acquisition.  The Class A Subordinate Voting Shares acquired through the normal course issuer bid will be cancelled.BMTC considers that the acquisition of Class A Subordinate Voting Shares that it may effect from time to time in the course of its normal course issuer bid is a sound use of its funds.BMTC Group inc., which Class A Subordinate Voting Shares are listed on the Toronto Stock Exchange, is an important retailer of furniture, electronic goods and household appliances in appliances in the areas of Montreal, Quebec City, Repentigny, Ste-Therese, Laval, Longueuil, Kirkland, St-Georges, Trois-Rivières, Sherbrooke, Chicoutimi, Rivière-du-Loup, Rimouski, Levis, Beauport, Ste-Foy, Gatineau, Ste-Hyacinthe, St-Jean-sur-le-Richelieu, Granby, Vaudreuil, Mascouche and St-Jérôme through its subsidiary Brault & Martineau and Ameublements Tanguay.For further information: Mr. Yves Des Groseillers Chairman, President and Chief Executive Officer BMTC Group inc.   (514) 648-5757